Question

Can a bank continue to charge interest after considered a charged off reposession?

I was going through my credit reports and I have 2 companies charging interest after charging off the account. One is a repossesion that is reporting 5800 and i don't think that they included the amount they had sold the car for. I contacted to get the info and the girl kept telling me "I don't know I would have to find your file we sent you the infomation January of 2014." basically unable to give me much information outside of the initial amount and how after interest and fees I owe well over 8000. The account has been charged off since Nov 2014.
Then I have an old company that I owed 700 and it's been charged off for years... It with interest after being charged off is 1255.
Is it legal to charge interest after they have charged off the account? I know the initial debt is owed.

All Responses

A charge off means they have considered that account a bad debt and deducted it on their income statements. But, the account is still owed and they have not sent it to a collection agency for further action and interest will still accrue.

I suggest spending more time reading the articles provided on this site because you do need to understand how credit works and that is the focus of this site.

Your Credit Scores Should Be Free. And Now They Are.

Reply to this Question

Write your response:

The Credit Advice pages of the Site may contain messages submitted by users over whom Credit Karma has no control. Credit Karma cannot guarantee the accuracy, integrity or quality of any such messages. Some users may post messages that are misleading, untrue or offensive. You must bear all risk associated with your use of the Credit Advice pages and should not rely on messages in making (or refraining from making) any specific financial or other decisions.